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Update on India-US Trade Deal: 90% Progress Achieved
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Aaj Tak
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Update on India-US Trade Deal: 90% Progress Achieved

A representative from the U.S. Department of State reported significant progress in trade negotiations between India and the United States, noting that the draft agreement is over 90% complete, with only minor details remaining for finalization.

This official emphasized that this agreement has the potential to elevate the bilateral relationship between the two countries to a qualitatively new level. When asked by PTI about the timeline for signing the deal, the representative stated that developments should be monitored, as most of the work has been done, and the final points are currently being resolved, which he hopes will bring news soon.

He also noted that this agreement will add a new dimension to the relationship between America and India—a dimension that has remained unattainable in terms of trade for decades and was a major obstacle in their relations.

Earlier, Commerce and Industry Minister Piyush Goyal indicated that negotiations were nearing completion. Speaking at the Indian Public Forum in New Delhi on Thursday, he announced that India had finalized nine free trade agreements, including the deal with the US, which is nearly ready. He added that they need to find suitable benefits for themselves to implement the agreement as soon as possible.

India and the US announced the structure of the first phase of the bilateral trade agreement in February. However, further discussions were required due to changes in American tariffs. Goyal clarified that India's trade agreements will ensure preferential access to markets accounting for about 75 percent of global GDP.

The U.S. official also pointed to active engagement in diplomatic relations. Secretary of State Marco Rubio plans to visit in October, and Prime Minister Narendra Modi is scheduled to visit the US in December to participate in the G20 summit in Florida. The representative noted that much is happening in the relationship, and the foreign ministers of Quad nations will meet for the third time this year.

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US Trade Tariff Against Countries Buying Russian Energy Carriers Reaches 100%
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US Trade Tariff Against Countries Buying Russian Energy Carriers Reaches 100%

The situation in trade relations between India and the US has undergone significant changes over the past eighteen months. In February 2025, the American tariff was set at 10%. However, the US parliament has now approved a bill that allows President Donald Trump to impose a tariff of up to 100% on countries purchasing oil and gas from Russia. There is a risk that India could fall under this restriction.

In February 2025, Trump stated that the US would determine its tariffs based on the tariffs imposed by other countries on American goods. During this period, India and the US began working on a limited trade agreement, aiming to increase mutual trade turnover to $500 billion by 2030.

In April 2025, the US announced the introduction of a 26% tariff on Indian goods. Nevertheless, this tariff was subsequently suspended for 90 days, during which time a 10% tariff applied to Indian products.

In July 2025, the US raised the tariff on Indian goods to 25%, and in August, increased it by another 25%, bringing the total tariff level to 50%. The reason for US dissatisfaction was India's purchase of oil from Russia. India protested, stating that it has the right to make decisions based on its national interests and energy needs for its population of 1.4 billion people.

In February 2026, tensions between the two countries eased somewhat. The US decided to lower the tariff on Indian goods to 18%. This was linked to reaching an agreement on reducing purchases of Russian oil and eliminating some trade barriers. The parties also published the framework for the trade agreement.

However, this relief was short-lived. After the expiration of a 150-day period in July, the US reintroduced a 10% tariff on India, citing that goods from India are produced through forced labor.

In September, the US House of Representatives approved a bill aimed at increasing pressure on Russia and Iran. This law grants Trump the authority to impose a tariff of up to 100% on countries that buy oil and gas from Russia. The goal of this step is to put pressure on Russia's revenue from energy sales. For India, this is a serious issue since the country imports oil from Russia. India warned the US that such actions could negatively affect bilateral relations. The mechanism for implementing this provision and its impact on trade between India and the US remains an open question.

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